Vistaprint Reports Double-Digit Increases, but European Business Lags

VENLO, THE NETHERLANDS—July 26, 2012—Vistaprint N.V. announced its financial results for the fourth quarter and fiscal year ended June 30, 2012.

Fourth quarter 2012 highlights:

• Revenue grew 20 percent year over year to $250.4 million
• Revenue grew 25 percent year over year excluding the impact of currency exchange rate fluctuations

Fiscal year 2012 highlights:

• Revenue grew 25 percent year over year to $1.02 billion
• Revenue grew 25 percent year over year excluding the impact of currency exchange rate fluctuations

“We are generally pleased with our accomplishments in fiscal 2012,” said Robert Keane, president and CEO. “We sustained strong annual revenue growth while executing on key strategy initiatives. We delivered earnings above our guidance range for the fourth quarter and fiscal year due to favorability on a number of cost items.

“In the fourth quarter, we were pleased with revenue performance in North America and Asia Pacific; however, we were disappointed with the deterioration of revenue growth rates in Europe. Over the last two quarters, we have seen lower growth rates in Europe than in North America, which is a break from the past,” continued Keane.

“Although we expected near-term revenue headwinds from the implementation of customer-centric user experience improvements, we have been more successful in mitigating these headwinds in North America than in Europe. We continue to believe that Europe has significant potential for us and are targeting improved growth rates over time.”

Financial Metrics

Vistaprint’s revenue for the fourth quarter of fiscal year 2012 grew to $250.4 million, a 20 percent increase over revenue of $208.8 million reported in the same quarter a year ago. Excluding Albumprinter and Webs combined revenue of $15.4 million, total fourth quarter revenue was $235.0 million.

For the full fiscal year, revenue grew to $1.02 billion, a 25 percent increase over revenue of $817 million in fiscal year 2011. Excluding the estimated impact from currency exchange rate fluctuations and revenue from acquired businesses, total revenue grew 17 percent year over year in the fourth quarter and 20 percent for the full year.

Operating income in the fourth quarter totaled $5.1 million, or 2.0 percent of revenue, and reflected a 70 percent decrease compared to operating income of $17.0 million, or 8.1 percent of revenue, in the same quarter a year ago.

For the full fiscal year, operating income was $55.2 million, or 5.4 percent of revenue, a 41 percent decrease compared to operating income of $93.1 million, or 11.4 percent of revenue, in the prior fiscal year.

Gross margin (revenue minus the cost of revenue as a percent of total revenue) in the fourth quarter was 64.6 percent, compared to 63.9 percent in the same quarter a year ago. For the full fiscal year, gross margin was 65.2 percent, compared to 64.8 percent in fiscal year 2011.

Capital expenditures in the fourth quarter were $13.5 million or 5.4 percent of revenue. During the full fiscal year capital expenditures were $46.4 million or 4.5 percent of revenue.

The company had net debt of $166.8 million, which consisted of $62.2 million in cash and cash equivalents and $229.0 million in long-term debt, with $157.0 million available under its credit facility as of June 30, 2012.

Operating Highlights

Vistaprint acquired approximately 2.2 million new customers in the fourth fiscal quarter ended June 30, 2012, compared with 1.8 million in the same quarter a year ago, reflecting an increase of 22 percent. For the full fiscal year 2012, the number of new customer acquisitions totaled approximately 9.4 million, a 27 percent increase compared with 7.4 million in fiscal year 2011.

On a trailing 12-month basis, the company’s unique active customer count was 14.4 million. Unique active customer count is the number of individual customers who purchased from us in a given period, with no regard to the frequency of purchase. This was a 26 percent increase compared to 11.4 million in the twelve month period ended June 30, 2011.

Total order volume in the fourth quarter of fiscal 2012 was approximately 6.4 million, reflecting an increase of approximately 14 percent over total orders of approximately 5.6 million in the same quarter a year ago.

Average order value in the fourth quarter including revenue from shipping and processing was $36.73, compared to $37.72 in the same quarter a year ago.

Vistaprint acts as a wholesaler to certain retail firms, providing white label solutions for online and/or in-store sales of select Vistaprint products. In the fourth quarter and fiscal year, these partnerships increased the growth of new customers, unique active customers, and order volume, and decreased average order value and advertising as a percent of revenue.

Revenue from customers in North America totaled $143.4 million, or 57 percent of total revenue, in the fourth quarter. This represents 20 percent growth year over year in reported terms and 21 percent growth year over year in constant currency.

For the full fiscal year, revenue from customers in North America was $543.9 million, or 53 percent of total revenue, representing 20 percent growth year over year in both reported terms and in constant currency.

Revenue from customers in Europe totaled $92.0 million or 37 percent of total revenue in the quarter. This represents 18 percent growth year over year in reported terms and 30 percent growth in constant currency. For the full fiscal year, revenue from customers in Europe was $415.2 million, or 41 percent of total revenue, representing 29 percent growth year over year in reported terms and 31 percent growth in constant currency.

Revenue from customers in Asia Pacific was $15.1 million, or 6 percent of total revenue in the fourth quarter. This represents 28 percent growth year over year in reported terms and 33 percent growth in constant currency.

For the full fiscal year, revenue from customers in Asia Pacific was $61.2 million, or 6 percent of total revenue for the fiscal year. This represents 44 percent growth year over year in reported terms and 38 percent growth year over year in constant currency.

Fiscal 2013 Outlook as of July 26, 2012

Ernst Teunissen, executive vice president and chief financial officer, said, “The fiscal 2013 guidance we are introducing today includes a range of constant currency organic revenue growth of 15 percent to 20 percent. Reaccelerating revenue growth in our core business is an important strategic goal for us, and we expect growth in North America and Asia Pacific to remain strong in fiscal 2013.

“However, we believe it is realistic and prudent to anticipate the potential for continued revenue weakness in Europe through fiscal 2013. These expectations are incorporated into our revenue guidance range.”

Fiscal Year 2013 Revenue

For the full fiscal year ending June 30, 2013, the company expects revenue of approximately $1.175 billion to $1.225 billion, or 15 percent to 20 percent growth year over year in reported terms. Excluding currency movements and acquired revenue, we expect constant-currency organic growth of approximately 15 percent to 20 percent. Constant-currency growth expectations assume a recent 30-day currency exchange rate for all currencies.

For the first quarter of fiscal year 2013, ending Sept. 30, 2012, the company expects revenue of approximately $250 million to $260 million, or 18 percent to 22 percent growth year over year in reported terms. We expect constant-currency organic growth of approximately 13 percent to 18 percent.

About Vistaprint
Vistaprint N.V. (Nasdaq: VPRT) empowers more than 14 million micro businesses and consumers annually with affordable, professional options to make an impression. With a unique business model supported by proprietary technologies, high-volume production facilities, and direct marketing expertise, Vistaprint offers a wide variety of products and services that micro businesses can use to expand their business. A global company, Vistaprint employs over 3,700 people, operates more than 25 localized websites globally and ships to more than 130 countries around the world.

Source: Vistaprint.